Baidu, Inc.: What Are Their Expansion Plans Of AI Offerings Beyond Ernie?

Baidu’s revenue growth for the first quarter exceeded expectations, with a year-over-year increase of 4%, reaching RMB 23.8 billion. Additionally, Baidu’s continued efforts in Gen AI path have resulted in a 12% year-over-year acceleration in the revenue growth from Baidu AI Cloud, which also delivered an operating profit on a non-GAAP basis. These positive results signify the company’s successful transition from an internet-centric business to an AI-first business. Regarding its AI cloud business, Baidu remains committed to a sustainable and healthy revenue growth. Their efforts to scale down low-margin businesses and focus on high-quality revenue have resulted in a non-GAAP operating profit. However, Baidu faces stiff competition, and changes in pricing policies by competitors could potentially impact their AI cloud development.